Does Your Boat Liability Policy Exclude Marine Activities?

Did you know, it is crucial to arrange public & products liability through a specialist marine insurer as many general insurance policies will specifically exclude marine activities within their policy wording?

Whilst it’s not a legal requirement to take out public liability insurance, many business owners see it as an essential business expense, and it’s required by many trade associations.

In many cases, you may find that you’re asked to show proof of public liability before you’re permitted to trade. Tradespeople will often need to show proof of cover before they’re allowed to enter a marina or boatyard and start work.

Similarly, if you are exhibiting or selling products at an exhibition or event, you may be asked to show proof of cover before you’re allowed to set up a stand.

What Is the Difference Between Public and Products Liability Boat Insurance?

Public liability insurance covers compensation claims made against your business by a third party for injury or damage.

Product liability insurance – which is often included in a public liability policy – covers compensation claims for injury or property damage that’s been caused by a product you’ve sold.

Types of Potential Claim

Examples of what liability insurance would cover you for:

• Someone trips over your toolbox and hurts themselves
• You are working on a vessel and accidentally spill paint on the deck
• Whilst valeting the interior of a vessel you accidentally knock expensive marine electronics off the shelf
• You are working on a vessel on hardstanding using a ladder and debris falls onto a pedestrian

Geographical Limits

The ‘geographical limits’ are the countries where the policy will provide cover to the policyholder in respect of their business activities.

Standard geographical limits are:

• United Kingdom
• Europe
• Worldwide excluding North America
• Worldwide including North America

Limit of Indemnity

The Limit of Indemnity (LOI) is the maximum amount the insurer will pay under a policy during the policy period.

Standard limits are £3 million or £5 million with many insurers able to offer up to £10 million.

Noted that should a higher limit be required this can often be arranged as Excess Layer Insurance, also known as Excess of Loss, is a policy designed to provide increased limits of liability over your primary insurance cover.

If you need more advice or a quotation for Public & Products Liability for your business, contact the experts at Velos.

Call us now on 0207 929 4058 or email us at marine@velosgroup.co.uk